New Charitable Gift Annuity Rates!

We have some exciting news that can boost your retirement income or provide income to someone you choose and support your favorite MultiCare cause. Effective July 1, 2018, charitable gift annuity rates increased!

How It Works

The concept is simple. With a charitable gift annuity, you make a donation using cash, marketable securities or other assets, and we, in turn, pay you or someone you choose a fixed amount for life. With this type of gift, you or your loved one can feel secure knowing you can count on stable payments for life. Gift annuity rates are an estimated 30 to 50 basis points higher, based on your age at the time of the gift. Learn more about charitable gift annuities and calculate your benefits.

Here’s An Example of How You May Benefit

Under the previous rate schedule, if Mary, 79, transferred $25,000 in exchange for a charitable gift annuity, she would receive annual payments of $1,650 at a rate of 6.6 percent. Instead, Mary waited to make her gift after the new rate schedule was in place on July 1, so the same gift amount provided $1,775 in annual payments, reflecting a 7.1 percent rate. That’s a 7.5 percent increase in payout rate.

New Rate Charts (effective July 1, 2018)
One Recipient Two Recipients
Age Rate Ages Rate
60 4.7% 60/65 4.3%
65 5.1% 65/70 4.7%
70 5.6% 70/75 5.2%
75 6.2% 75/80 5.7%
80 7.3% 80/85 6.6%
85 8.3% 85/90 8.0%
90+ 9.5% 90/95+ 9.3%

Additional Benefits

Beyond increasing your retirement income as you help shape your favorite MultiCare program or foundation’s future, gift annuities offer you tax benefits, including:

  • A partial income tax charitable deduction now for your gift when you itemize.
  • Part of each payment is income tax-free throughout your estimated life expectancy.

Tip: Consider Giving Appreciated Assets

Funding a gift annuity with appreciated assets, such as securities, will not only provide you with reliable payments for life and allow you to support your favorite MultiCare program or foundation’s work, but it can offer financial benefits. You will receive a federal income tax charitable deduction (when you itemize) in the year the gift is made and eliminate part of the capital gains tax you would have paid if selling the securities.

We Can Help

We would be happy to send you a free, no-obligation illustration showing you the increased benefits you can receive from a charitable gift annuity using the new rates. Your personalized illustration will include your potential income tax charitable deduction and our annual payments to you for life. Contact Frank Colarusso or Shelley Buck at 253.403.3093 or to begin.